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Staff welfare - Czech Republic

Updated 12/2012

Legal requirements

Social rules

Non-discrimination, equal treatment and gender equality

  • Non-discrimination, equal treatment and gender equality issues are regulated by the Labour Code which sets out the rules on:
  • working time and rest time;
  • holidays;
  • compensation for damages (mainly through work injuries or work-related diseases).
  • Non-discrimination čeština

The legal framework for protection against discrimination in employment is provided by the Anti-Discrimination Act.

  • Anti-discrimination Act čeština
  • Employment Code čeština

Employers with more than 25 employees on the payroll must employ persons with disabilities. These persons should account for 4% of the overall workforce.

An employer has the option of creating a protected workplace or a protected workshop for these persons.

  • Employing people with disabilities čeština

Health and safety at work

According to the Labour Code, the employer must ensure the health and safety of employees at work and provide the necessary protective and work facilities, clothing and drinks.

  • Health and safety at work čeština
  • New regulations applying to health and safety at work čeština

Sickness insurance is intended for employed persons and the aim is to provide these persons with financial payments in periods when they lose their income from employment e.g. for reasons of sickness, maternity or caring for a member of their household.

  • Sickness Insurance Act čeština

The Pension Schemes Act sets out the right to a basic mandatory pension scheme covering cases of old age, invalidity and death of a breadwinner.

  • Pension Schemes Act čeština

The Employment Act regulates the operation of state employment policies, the aim of which is to achieve full employment and protection against unemployment.

  • Employment Act čeština

The Public Health Insurance Act regulates public health insurance and the scope and terms of health care provision and the method of setting prices and allowances in respect of medicines and foodstuffs for special therapeutic purposes that are covered by health insurance.

  • Public Health Insurance Act čeština

Employment law

Contract law

Information on employment and contracts of employment is available on the following links:

  • Employment čeština
  • Terminating employment čeština
  • Types of employment contract čeština

Employment relationships

Employment relationships are regulated by the following basic rules:

The basic rate of the minimum wage is CZK 7,955 a month or CZK 48.10 per hour.

  • Minimum wage čeština

The basic working week must not exceed 40 hours.

  • Working time čeština

The employer must provide the employee with a break of at least 30 minutes after a maximum of 6 hours of work. Young employees must be provided with such a break after a maximum of 4.5 hours of work.

  • Breaks for food and rest čeština

The employer may instruct the employee to work overtime only for compelling operational reasons. Overtime may not exceed 6 hours per employee per individual week or 150 hours per calendar year.

  • Overtime čeština
  • Types and characteristics of individual employment relationships čeština

Employment protection

Employees are protected by the Labour Code from unjustified termination of employment. The employer may give employees notice only on the grounds explicitly set out in the Labour Code and the notice itself must be in writing.

  • Notice čeština
  • The notice period is at least two months.
  • Notice period čeština
  • When employment is terminated by the employer the employee is given severance pay, which is a specific form of compensation for loss of employment.
  • Severance pay čeština
  • Where a so-called non-competition clause has been concluded and the employment is terminated by the employer, the employee is given so-called exit pay.
  • Exit pay čeština

Disputes

Disputes between employer and employee concerning employment claims are handled and decided by the civil courts.

The validity of a termination of employment may be contested before a civil court by the employer or the employee no later than 2 months from the date on which the employment is to end.

  • Invalidity of termination of employment čeština

Collective dispute resolution is governed by Act No 2/1991 on collective bargaining as amended (Section 10 and following).

  • Act No 2/1991 on collective bargaining čeština
  • Strikes and lockouts čeština

It is also possible to turn to arbitrators and adjudicators for resolving collective disputes.

  • List of arbitrators and adjudicators čeština

Mandatory social rules complete the requirements related to managing staff.

Businesses are free to go beyond the minimum social legal requirements at their own initiative.

Administrative procedures

Social insurance

When hiring staff, you must register them with the following bodies:

  • the Disrict Social Security Offices (in Prague the Prague Social Security Office and in Brno the Brno Municipal Social Security Office) dealing with pensions and sickness insurance,
  • the relevant health insurance organisations dealing with health insurance payments,
  • the tax authority dealing with the relevant tax payments.

Employers have an obligation to make a sickness insurance declaration for new employees on the printed form within eight calendar days of the start of employment. A health insurance declaration may also be submitted electronically by the employer via the Public Administration Portal.

  • Sickness insurance - obligations čeština
  • Sickness insurance - forms čeština Online government service
  • Sickness insurance notification for start of employment - electronic form čeština Online government service

In the Czech Republic, people have health insurance when they have permanent residence in the Czech Republic or when they do not have permanent residence in the Czech Republic but are employees of an employer that has a head office or permanent residence on the Czech republic.

Health insurance cover comes into being for a person without permanent residence on the day when that person becomes an employee in the Czech Republic or on the day he/she acquires permanent residence in the Czech Republic.

  • List of health insurance organisations čeština

In case of loss of employment you will be put on the job seekers' register from the day on which you submit an employment agency application. If you submit an employment agency application no later than three working days after the termination of employment you will be put on the register from the day following the termination of employment.

Employment agency applications must be submitted in person as the law does not allow applications to be sent by post or electronically.

In case of sickness the employee submits a benefit request, usually drawn up by a doctor, to his employer, who forwards it to the relevant local social security office.

If an employee is applying for a sickness insurance benefit he must fill in the legally prescribed form published by the Czech Social Security Authority.

  • Sickness insurance forms čeština

Resources

Information on employment and employment contracts is available on the following links:

  • Employment čeština
  • Terminating employment čeština
  • Types of employment contract čeština

The following governmental and non-governmental organisations and web portals offer further information and useful services relating to social security and work conditions.

  • Ministry of Labour and Social Affairs of the Czech Republic čeština
  • VZP - General Health Insurance Organisation čeština
  • BusinessInfo.cz - official portal for business and export čeština
  • Public Administration Portal of the Czech Republic čeština

On the website of the Czech Social Security Authority, useful information is available concerning pensions, sickness insurance and social security insurance.

  • Czech Social Security Authority - information čeština

Programmes

Subsidies exist for employers taking on people with disabilities. Providing the employer meets the necessary legal conditions, he/she may gain certain financial benefits and tax reductions.

  • Programme of subsidies for employing people with disabilities čeština

Check also the legislation on this topic in:

  • References

    Legal texts

    • Act No 40/1964 the Civil Code as amended čeština
    • Act No 262/2006 the Employment Code as amended čeština
    • Act No 155/1995 on pension schemes as amended čeština
    • Act No 187/2006 on sickness insurance as amended čeština
    • Act No 589/1992 on social security contributions and state employment policy contributions as amended čeština
    • Act No 582/1991 on the organisation and implementation of social security as amended čeština
    • Act No 435/2004 on employment as amended čeština
    • Act No 48/1997 on public health insurance as amended čeština
    • Act No 198/2009 on equal treatment and on legal protections against discrimination as amended (the Anti-discrimination Act) čeština
    • Act No 2/1991 on collective bargaining as amended čeština

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Further help

On the following websites useful information is available as well as contacts at the Ministry of Labour and Social Affairs of the Czech Republic and the Czech Social Security Authority:

  • Ministry of Labour and Social Affairs of the Czech Republic čeština
  • Czech Social Security Authority čeština
  • Contact points at the Czech Social Security Authority head office and centres čeština
  • Contact points at Czech Social Security Authority district offices čeština

The call centre and information office of the Czech Social Security Administration provide information to the public mainly concerning pensions:

  • ČSSZ Call centre čeština

The call centre for employment services operated by the Ministry of Labour and Social Affairs of the Czech Republic is available in case you need advice on finding employment, registering at an employment office, securing the payment of unemployment benefits or retraining.

  • Call centre for employment services čeština